The corporate sector is pushing for government support to ease the burden of utility bills
Meanwhile, the cancellation of the Thailand passport and the implementation of a tourism stimulus measure called “We Travel Together” to encourage domestic travel by Thais have given the tourism industry an additional boost.
Although fuel costs appeared to be improving in August 2022, entrepreneurs are still concerned about rising production costs such as logistics and prices for commodities such as animal feed, steel and aluminium, electricity fees and a shortage of foreign workers in the manufacturing sector.
There are also some negative factors to worry about, such as the global economic slowdown, high inflation and tensions between Russia and Ukraine.
The survey was conducted in August 2022 among 1,304 companies represented by 45 industry clubs affiliated with the FTI. The results revealed more factors worrying entrepreneurs, such as the global economy (75.9 percent), domestic politics (42.8 percent), the exchange rate of the baht against the US dollar from an export perspective (39.3 percent) and loan interest rate (35.7 percent).
The TISI for the next three months is expected to be 99.5, up from 98.7 in July 2022, as entrepreneurs believe Thailand’s economy will gradually expand on the back of the recovery in the tourism sector, rising domestic demand and the government’s stimulus measures.
Entrepreneurs fear a gradual increase in the minimum wage rate from October 1, 2022, as well as a new round of rising electricity tariffs from September to December 2022, which will lead to higher production costs. Similarly, risks related to the economic slowdown and geopolitics could impact Thailand’s export sector, Kriengkrai concluded.